I love when people share their processes with me. Getting a different perspective on how others manage OFS is so helpful.

Maximilian F. sent this to me a few weeks ago about how they handle pay raises.
Its different than how we do it, but works well for them.

I thought about sharing how we do raises and why we do it this way.

– Our OFS really appreciate openness, transparency and security in their work and life.

– We on top like to ensure clarity on costs and a long term perspective for our OSFs within the company.

– Lastly, we want to minimize competition in the group, where unfairness in pay (or the perception of it) is a major problem.

So we decided to decouple individual performance (which is overrated anyways) from pay. Some jobs are just more visible or impactful. That does not mean that it has less value. Instead everyone progresses every year by a published chart with payment. There are different roles that are mapped on these salaries, but everyone has clarity and security. It might be a bit boring and too predictable for very ambitious people, but works well for us. At the end of the year we evaluate the whole company performance and everyone gets their share depending on role and time-with-the-company – so we went from individual to team performance. Combined with regular retrospectives to foster efficiency and learning, this enables us to meet the goals of everyone.



PS. Is there something you do well that you’d like to share?  
I’d love to hear it. For example…
I’m gathering a list of tests employers give to workers during their recruiting. Putting them into a guide. I have some really creative ones. 
Do you have tests you give when recruiting? I’d love to hear it. Just reply to this email.
If I use yours in the guide I’ll give you the guide free.